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development process
Development
Guide
Cautionary Note for Use of This Document
Acknowledgement
This guide has been in existence since 1991 and has been through regular updates during
this time.
The content in the guide has been reviewed through various Alberta government
departments including:
• Culture and Community Spirit
• Environment
• Municipal Affairs
• Sustainable Resource Development
• Tourism, Parks and Recreation
This guide examines the Alberta tourism industry and provides a thorough analysis of
tourism development in the province. The information abides by the regulations set by
municipal, provincial and federal governments, making it a practical tool for the first-
time tourism developer.
The guide serves merely as an information guide, and prospective developers are
encouraged to undertake their own independent research and feasibility assessments to
ascertain the viability of their specific projects.
While efforts were made to update the various components in this guide, there is no
guarantee that all the required updates were captured or that changes will not occur with
regards to the various processes, contacts and regulations/permits outlined in this guide.
It is the responsibility of the developer/entrepreneur to check on permits, regulations and
approval processes for his/her particular tourism opportunity.
2 Acknowledgement
Table of Contents
Table of Contents
Cautionary Note for Use of This Document 1
Acknowledgement 2
Section I: Introduction 6
The Alberta Tourism Industry 6
What’s Unique about Tourism Development 7
Why a Step-By-Step Guide Is Needed 8
When Professional Help Is Needed 8
The Basic Components of Development Analysis: Feasibility 9
Chart 1 – Basic Components of Development Analysis 10
Table of Contents 3
Table of Contents
4 Table of Contents
Table of Contents
Table of Contents 5
Section I: Introduction
Section I: Introduction
This guide has been prepared to assist anyone who is considering developing a tourism
business in Alberta. The information provided is geared towards the first-time tourism
operator, who may not be experienced with the development process in the Province
of Alberta. For experienced operators, the guide can serve to outline the development
process.
All prospective developers are encouraged to read the complete guide before proceeding
and then use each section as a workbook during the relevant step in the process.
Charts are used throughout the guide to illustrate the development process. Checklists are
used to highlight some of the many questions tourism entrepreneurs must ask themselves
as they evaluate the potential risks and rewards of a prospective development.
To assist you in preparing your concept and business plan, a comprehensive list of
contacts and information sources is provided as the final section of the guide.
To further assist you in your tourism business research there are two other supporting
guides available through Alberta Tourism, Parks and Recreation (ATPR):
All prospective These guides are also available on CD and on ATPR’s website: www.tpr.alberta.ca
developers are
encouraged The Alberta Tourism Industry
to read the
complete Tourism is both an important and growing industry. It is becoming increasingly
sophisticated, as evidenced by the varied segments and products that comprise the
guide before industry. The Canadian Tourism Commission reports that in 2007, tourism generated
proceeding $70.8 billion in tourism expenditures in Canada, which supported numerous large and
and then use small businesses. The importance of tourism to the Alberta economy is illustrated by the
fact that in 2007, tourism expenditures accounted for $5.64 billion, of which 53% was
each section from Alberta residents, 22% from other Canadian provinces and 25% from international
as a workbook visitors. In Alberta the tourism industry employs over 111,000 people and attracts millions
during the of visitors each year.
relevant step in To facilitate this important industry, ATPR is committed to facilitating the profitability
and sustainability of existing tourism operators, as well as the entry of new operators
the process. into the tourism sector. We encourage the development of new destinations and tourism
products through positioning land for tourism development, providing assistance with
the regulatory processes, encouraging a supportive policy environment, and actively
6 Section I: Introduction
Section I: Introduction
The tourism industry is largely comprised of facilities, attractions and events designed
to interest traveling Albertans and the many non-resident visitors who come to our
province each year. It includes a transportation infrastructure capable of moving people
efficiently from their place of residence or business to their desired destination. The
common objective of both government and industry is to meet the needs and exceed the
expectations of visitors through market driven tourism development.
The tourism industry must respond to the changing wants and needs of consumers and
stakeholders; tourism operators must be responsive to these trends. Successful business
models today reflect a holistic approach to development and governance. With your
business philosophy and model, consider the effect your concept may have on the
environment and community, and what is your social obligation to positively work within
these boundaries.
While reference is made to “tourism businesses” in this guidebook, the same basic
business planning principals have relevance to communities and non-profit organizations
undertaking tourism development projects (e.g. museums, interpretive centres).
Section I: Introduction 7
Section I: Introduction
Tourism products are also extremely diverse. They may involve extensive land
development and the construction of several buildings such as for a resort hotel. At the
opposite end of the spectrum are those tourism businesses which own no land and few, if
any, buildings e.g., heli-skiing, river rafting and horseback riding operations. The scale
of tourism developments is equally diverse, from a small owner operated boat rental
outfit to a multi-million dollar four-season resort.
A final aspect that is unique to tourism development is that many developments take
place in less accessible locations or less populated areas in order to take advantage of
Alberta’s scenic beauty. This means that a developer must often evaluate unusual access
or servicing requirements. This guide will help you assess, plan and implement your
tourism project.
8 Section I: Introduction
Section I: Introduction
• A new or unique product or service may benefit from formal market research and
evaluation by a consulting firm.
• A complex building project should have professional design plans and cost
estimates.
• It is important to determine at a very early stage if you can raise the necessary debt
and equity financing for the project. Lenders typically will not lend more than 50% of
the costs required to construct a new tourism project. Developers therefore must have
capital or be able to raise sufficient cash equity to undertake a tourism project.
• Review your idea in terms of the current market supply, demand and trends. Identify
who your customers are, what they want, where they are located and what is currently
available to meet their wants and needs.
• Develop a business concept by defining a specific customer-targeted tourism
development project. Examine land options available.
• Evaluate the concept. Start with market and financial analysis, and continue with
potential location, land-base accessibility and site analysis. To be successful, a tourism
development should have a positive evaluation in all three components.
• Go, no-go decision. This is the time that you take a hard look at what you have
uncovered to-date and make the decision to proceed or not proceed with the project.
• Prepare a comprehensive project plan that includes a marketing plan, a business plan
and a physical concept plan. The project plan is the summary of your evaluations and
will be the basis for approvals from development authorities and financing sources.
• Obtain necessary approvals from federal, provincial and municipal regulatory
authorities. Secure necessary funds from lenders and/or investors.
Chart 1 (page 10) illustrates the general development process. These steps have determined
the content of this guide. Each is addressed in a separate section that builds on earlier
information and offers explanations and contacts for working through that step.
Section I: Introduction 9
Section I: Introduction
Your Idea
Financing
Initial Review
Main Review
10 Section I: Introduction
Section I: Introduction
Also note, it seems to always take longer than initially anticipated to take an idea from
concept to reality, than planned.
As you work through the steps, be sure to keep a journal to keep track of the names
and positions of people contacted; collect application forms; and begin a co-operative
relationship with the many agencies you contact.
Your initial contact with tourism experts is a good time to ask for feedback on the overall
project and determine:
• What is the general attitude towards development in the particular area?
• Who is responsible for approvals?
• How long will approvals take?
• When should applications be submitted?
• Is there an appeal procedure?
• What are the potential challenges of the concept? Can these be realistically
addressed?
Section I: Introduction 11
Section II: Defining The Project
Before proceeding into detailed development analysis, it is critical to determine who the
potential customers are for this facility or service (the target market), and whether their
demand is already being met by other businesses. If this preliminary market analysis
does not favour development it is wise to rethink the initial concept.
• What is the nature of the tourist traffic in the area – who visits, how long do they stay,
what services do they use? Has tourist traffic to the area been increasing, decreasing
or holding its own over the last several years? What share of the tourist market do you
think your business will capture?
• If this is a new type of tourism business for an area that has not previously been
developed for tourism, what information do you have that supports its potential to
bring tourists to the area? Have other facilities failed in similar circumstances? Why
do you think you can succeed?
You can answer many of these questions by talking to other tourism operators and
agencies/organizations involved in tourism development.
Several good sources for tourism research and business information can be found at:
• ATPR’s website: www.tpr.alberta.ca
• Travel Alberta’s website: www.industry.travelalberta.com
• The Business Link website: www.canadabusiness.ab.ca
Early thought should be given to the review process that may be needed for land-based
developments. Investigate the criteria and government requirements. For example,
the Environmental Assessment Process (EAP) and a Natural Resources Conservation
Board (NRCB) review may be required. A development must always consider the social,
economic and environmental outcomes and impacts on a particular site and adjacent
areas/communities. Information on the Environmental Assessment Process (EAP) is
available from Alberta Environment: www.environment.alberta.ca or by dialing the
Government of Alberta Toll free line 310-0000 or (780) 422-1977.
Attention to this area will help you realistically assess the feasibility of undertaking your
proposed project.
In summary, the focus of this initial look at the development process should consist of:
• an examination of the land and development process involved;
• time required to move through the development process;
• a broad financial picture; and,
• a general idea of project timing.
The original concept will likely be altered throughout the process as more site
information, development costs or licensing requirements become known. There may
not be a commitment to a specific location at this point – this will be the result of detailed
site analysis. An entrepreneur should, however, always maintain a clear statement of the
business concept.
If you already hold a lease or title on a location, then the development process only
addresses the proposed use for the land and the improvements or changes required to
accommodate the desired facility.
For the purpose of leasing or purchase, Crown lands in Alberta are under one of the
following jurisdictions:
• Alberta Sustainable Resource Development - Lands Division.
• Alberta Tourism, Parks and Recreation - Parks Division (within a provincial park or
provincial recreation area, regulated under the Provincial Parks Act).
• Federal Government lands (includes National Parks, Military reserves and some
airports).
• Alberta Transportation.
The process of acquiring public land in Alberta for commercial tourism purposes is
clearly identified. Acquiring a lease on publicly held (Crown) land is dependent on the
existing provincial policies and plans covering that area and the department that retains
responsibility for it.
Resource Assessments
As part of the information collection and evaluation stage, there are two resource
assessments that the proponent may be asked to produce.
Alberta Environment has responsibility for the Environmental Assessment Process (EAP)
and Alberta Culture and Community Spirit has responsibility for Historic Resource
Impact Assessments (HRIA). Both requirements have the power to halt the development
process for lack of compliance in submitting a satisfactory assessment or abiding by the
directives in the assessments.
The purpose of the Natural Resources Conservation Board (NRCB) Act is to conduct
impartial reviews of projects that will or may affect natural resources in Alberta to determine
if the projects are in the public interest. For applications requiring an Environmental
Impact Assessment (EIA), Alberta Environment provides the NRCB with confirmation
that the EIA is complete for the purposes of meeting requirements under Environmental
Protection and Enhancement Act (EPEA). Development proponents should contact the
NRCB to determine if their project falls within the mandate of the NRCB.
Proponents should be aware that determining the need for the EAP and identifying its
scope and contents requires consultation with Alberta Environment and the public. The
initial information presented to the department and the public must be clear. It is strongly
recommended that prospective developers anticipate and address all concerns regarding
natural resources and community interests. Proponents need to determine if the EAP is
required for their project so its preparation can be incorporated into the project timeline.
historic resource, or allow the historic resource to be destroyed after sufficient study. The
proposed activity may proceed only after the Minister has issued clearance under the
Act.
It is the developer’s responsibility to make sure that Alberta Culture and Community
Spirit’s Historic Resources Management – Land Use Planning Section has seen and
given clearance to the development proposal. A legal description and concept plan are
usually all that are needed to determine whether an HRIA is required. The costs of the
HRIA and any subsequent mitigation or protection during construction are borne by the
developer. It is strongly recommended that this step be initiated early in the development
process. It is much easier to reposition a structure at the conceptual stage than at the
construction phase
The department has the legislative power to place a “Stop Work Order” on the project
so it is in your best interests to make sure the review process and subsequent guidelines
are followed.
Municipal governments are an important part of the process. They ensure that local
development regulations, standards and policies are maintained. Co-operation is required
between provincial government and municipalities to align desired outcomes.
You, the developer/applicant, will also be actively involved in the ATRL process.
Generally, ATRL applicants are private sector developments that offer tourism and
commercial recreation opportunities to the public and may involve any or all of the
following:
• a long term lease;
• permanent structures;
• public review (as determined by one of Alberta Sustainable Resource Development’s
local land managers); and,
• participate in a pre-application meeting with provincial government staff and the local
municipality;
Alberta Sustainable Resource Development or Alberta Tourism, Parks and Recreation will
coordinate the review of the application with the land manager and all other reviewing
agencies.
The land manager will make a decision to recommend either the conditional approval or
rejection of the application.
The ATRL process package and other information on how to start a tourism business are
also available and can be viewed at the Alberta Tourism, Parks and Recreation’s website:
www.tpr.alberta.ca
The purpose of Information on the CTR program, including application procedures and areas open to
CTR operations can be obtained by contacting a local area Alberta SRD office. Additional
the Land-use information regarding trail riding in Alberta can also be found on the Alberta Outfitters
Framework is to Association website: www.albertaoutfitters.com or call toll free 1-800-742-5548.
manage growth, Commercial Trail Riding is also enabled within provincial parks. For information on
not stop it, Commercial Trail Riding within a provincial park, contact the local park warden: http://
gateway.cd.gov.ab.ca//contact.aspx or call toll free 1-866-427-3582.
and to sustain
the province’s
growing Leasing in Kananaskis Country
economy while
balancing this Development within Kananaskis Country is guided by the Kananaskis Country Recreation
Policy, 1999. New, large-scale developments are directed outside of Kananaskis. New
with Albertans’ facilities (small fixed-roof, camping) will be directed to nodes that are identified in
social and management plans. New facilities will be limited to a maximum of 15,000 square feet,
environmental including accommodation and support buildings, and cover less than three hectares.
Where there may be more than one qualified proponent, a call for proposal process may
goals. be used.
Land-Use Framework
The Alberta government has developed a Land-use Framework. The purpose of the
Land-use Framework is to manage growth, not stop it, and to sustain the province’s
growing economy, but balance this with Albertans’ social and environmental goals.
Therefore, the Alberta government must provide the kind of policy direction, guidelines
and opportunities that the local levels of government cannot. The Land-use Framework
will leave local decision-making authority with the same officials who currently exercise
it. However, in the future, these decisions will have to be consistent with regional plans.
Accordingly, the Land-use Framework consists of seven basic strategies to improve
land-use decision-making in Alberta. The seven strategies are:
• Develop seven regional land-use plans based on seven new land-use regions.
• Create a Land-use Secretariat and establish a Regional Advisory Council for each
region.
• Cumulative effects management will be used at the regional level to manage the
impacts of development on land, water and air.
• Develop a strategy for conservation and stewardship on private and public lands.
• Promote efficient use of land to reduce the footprint of human activities on Alberta’s
landscape.
Although land within provincial parks and provincial recreation areas is not available for
sale, contractual agreements can be obtained to facilitate the delivery of a service to the
public. For example, many parks and recreation area campgrounds are operated by the
private sector under contract.
Any tourism development opportunity identified in a provincial park would follow the
Land-use Framework and the new Plan for Parks strategy for development. Under the
Plan for Parks, a policy to encourage innovative private sector involvement in parks
will be developed in order to enhance and diversify visitor experiences. This includes
investing in existing facilities and/or developing new facilities*. It also involves creating
operational policies to guide the use of parks, such as the operation of motorized vehicles,
geocaching, horseback riding, hunting/outfitting, climbing and other activities.
*Facilities include campgrounds, picnic sites, trails, buildings, visitor centres, staging areas,
water and sewer systems, and all other infrastructure that supports park visitor experiences.
ATPR may identify a need that can best be met by the private sector. A call for proposals
is issued to ascertain the level of interest to provide this service. Depending on the
appropriateness and viability of the proposals received, an agreement may be entered
into with one of the proponents.
Proponents may propose the addition or enhancement of facilities to better serve the
public. The contract length may be extended to provide an incentive for this private
sector capitalization.
All inquiries for opportunities within provincial parks and recreation areas should be made
to ATPR - Parks Division toll free at 1-866-427-3582 or (780) 427-3582 in Edmonton.
If approved, the applicant and the province will enter into an agreement with specific
conditions to be applied. More information on development in parks can be found at
ATPR’s website: www.tpr.alberta.ca/parks
Lands within the National Parks are managed by Parks Canada Agency. The Canada
National Parks Act requires each of Canada’s 39 national parks to prepare a management
plan, and, in consultation with Canadians, to update the plan every five years. Parks
Canada Agency also develops community plans for the park communities of Banff,
Jasper and Waterton.
These plans establish clear limits to development associated with appropriate activities
while preserving and strengthening the ecological integrity of national parks in a way
that integrates ecological, cultural, social, and economic values. Developers wishing
to investigate opportunities within the national parks should contact the local Park
Superintendent and town manager for the community. For inquiries outside of the town
sites, contact the Park Superintendent’s office. For contact information, check out the
Parks Canada website at: www.pc.gc.ca
All lands within National Parks are held under a lease. Current leased lands are obtained
through the assignment or purchase of an existing lease. In addition, some opportunities
exist for rights to occupy lands through a License of Occupation, normally outside of
townsite communities, which allow for commercial enterprises ranging from boat rentals
and commercial accommodation to food services. The annual cost for these licenses is
currently a negotiated percentage of gross.
Developers interested in leasing airport land (Federal or Private) should contact the respective
airport authority/manager directly. A directory of some of the airports in Alberta is listed in
Section VI.
Summary
The first two steps of the development process outlined in Chart 1 (page 10) have now been
addressed. The preliminary work includes reviewing a business idea in the context of the
tourism industry and the existing market conditions. The result is a business concept that
describes the kind of venture proposed, what makes it unique and why the entrepreneur
thinks it will succeed. The next move is to consider potential locations and identify how to
acquire the rights to the land base associated with each.
Depending on the status of the land desired, the proponent advances more or less directly on
to the gathering of detailed information. This research is done in response to requirements
for a potential land lease, and or to facilitate the purchase of private land from a vendor. It is
also the next step in generating the marketing, business and concept plans.
Project Feasibility
In determining the feasibility of a tourism project, as with any business, an accurate
market assessment and careful financial planning are critical to the success of the venture.
For large or complex projects, professional help is recommended. In evaluating projects,
the following steps should be completed, and all the questions should be answered.
These steps force even the most enthusiastic, idealistic entrepreneur with a brilliant idea
to make a realistic assessment of the risks and rewards of a project. For some projects
either the market or the financial analysis (or both) may prove the idea to be unfeasible,
and a re-examination may be required. The following steps highlight the need to complete
an economic evaluation before any investment is made.
Getting Started
There are several sources of assistance available to a prospective developer. Private
consultants can evaluate the project. Alternatively, assistance can be obtained from
Alberta Tourism, Parks and Recreation, Canada-Alberta Business Service Centres
(Edmonton and Calgary – federal/provincial/municipal program), Community Futures
offices (federal government program), Business Development Bank of Canada (federal
Crown corporation) and Agricultural Financial Services Corporation (provincial Crown
corporation). These government agencies provide a range of services and publications
that can assist you with the evaluation of your project. Section VI lists government offices
around the province.
Alberta Tourism, Parks and Recreation - Tourism Division, offers services designed to
facilitate tourism development. The programs and services are delivered through three
Branches of the Department:
• Tourism Business Development, Research and Investment Branch
• Work with other government departments in an advocacy role to represent the interests
of the tourism industry in key policy areas such as improved air access, development
on Crown land and product development.
• Provide advice on tourism-related economic impact assessments.
Tourism Research
• Conducts research and provides timely, relevant information that enhances
understanding of market and consumer trends. Also measures Alberta’s tourism
industry performance.
Tourism Investment
• Work with investors, developers, and the financial community to encourage and
facilitate investor interest and involvement in Alberta’s tourism industry.
• Assessment and linking of investor interests and financial resources with appropriate
tourism investment opportunities.
• Maintain a database of domestic and foreign investor leads and key contacts. Organized
site visits to review investment opportunities based on investor requirements and
resources.
• Generate investor interest through investment attraction activities such as: the annual
Tourism Investment Symposium, the tourism investment section of the Alberta
Tourism, Parks and Recreation website, participation at key tourism investment
conferences and events, and organizing tourism investment attraction missions.
• Proactively work with Alberta International Offices in Beijing, Tokyo, Hong Kong,
Munich, Mexico City, Taipei, Seoul and London to distribute information on tourism
investment opportunities in Alberta, with the goal of attracting foreign investment.
• Links to the Business Immigration Program within Alberta Employment and
Immigration.
• Supply expertise and information to tourism sector partners to support the development
of new and expanded tourism products.
• Partner with the Canadian Tourism Commission, other provinces and territories on
product development research and convey the results to our clients.
Aboriginal Tourism
Aboriginal tourism is a sector of tourism that deals
specifically with culturally reflective tourism activities
by First Nations, Métis and Inuit people. Aboriginal
tourism operators can range from an individual start-up
entrepreneur, to a large community-based installation like
a museum or cultural centre. Aboriginal tourism activities
ATPR offers services designed to span a diverse spectrum from individual arts, to large
events like pow-wows, gatherings or rodeos. Aboriginal
facilitate tourism development. cultural tourism can benefit all community members by:
• Protecting and providing opportunities for community
members to connect to cultural practices in a manner that
reflects honour and distinction.
• Provides wide ranging employment opportunities Develop a concept for the right
within the community, that reflect and build on that product or service in the right
community’s cultural heritage. location
The tourism developer must respond to emerging trends. If the proposed service or
facility is intended to capitalize on an innovative new trend in the industry, the developer
must research consumer appeal to be assured that there are enough people interested in
the new concept, that they have enough money to spend on it and that they are willing
to spend their money on it. Such concerns can be answered through a market research
study.
Clearly defining the market for your tourism business enables you to determine your
marketing objectives. These objectives will direct the marketing component of the
business plan.
Demand Analysis
Each visitor is looking for a different ideal experience and has specific preferences
for type of accommodation, food services, recreation, and so on. As a result, there are
numerous ways to break the tourism market into sub-groups. The important thing is to
identify the groups (segments) that will buy your product or service.
Once you have identified the one or more types of tourists you anticipate (or would like
to attract), you can then develop a detailed profile of your target market(s). You should
develop a clear understanding of this market in terms of:
• Who they are (age, income, marital status, education and lifestyle patterns).
• How many are expected.
• What interests them.
• Where they come from.
• Why they travel.
• When they travel.
• How often they travel.
• How they travel.
• How they spend their money.
• How price-sensitive they are.
The Canadian Tourism Commission (CTC) has a full range of market research and
statistical data pertaining to Canadian and non-Canadian travel markets. Information can
be found at: www.canadatourism.com
The Canadian Tourism Research Institute (CTRI) serves the travel and tourism
industry by providing economic forecasts and models. The relevant web link is: www.
conferenceboard.ca/topics/economics/CTRI
Supply Analysis
It is important to evaluate the existing supply of tourism services and facilities. You must
determine:
• What competitive facilities are there in the market area?
• What are the current usage rates or occupancy rates for operators in the regular and
off-season?
Market Evaluation
The following list includes many of the critical questions an entrepreneur should seek to
answer before deciding to commit to a business concept.
Orientation
What markets do you hope to attract? What is the nature of the area tourist traffic and
what have been the recent trends?
What scale of project would be most appropriate based on the landscape and surrounding
communities? Why do you think it will succeed?
What recent surveys or market studies have been done for this area or market
component?
Does the local community support the project? What concerns do they have regarding
tourism development (e.g. environmental)?
What are the environmental and social considerations that need to be assessed and
reflected in your proposal?
What other land use activities are occurring in the area? How are people currently using
the area? Are these uses compatible with your proposed tourism development?
What are the current types of recreation and tourism activity in the area?
Demand Analysis
How many tourists visit the area in the regular and off-seasons? Why do they come?
How many of these tourists could potentially use your service or facility?
When do people travel to this area or facility? Weekends? Summer holidays? During
hunting season? Define the regular and off-seasons, and corresponding visitor profiles.
Are visitors to the area passing through as a main travel corridor or is this a destination?
What preferences have been shown for hotel, motel, bed-and-breakfast, or campground
accommodations? Is this pattern changing?
What is the general origin of visitors to the area? How do they travel to the area?
What is the average length of stay? Will your operation change any of these trends?
What is the forecast rate of growth in the number of tourists to the area? Does the area
actively promote tourism?
If you anticipate a mainly local demand, what is the projected population growth,
average income levels, spending patterns, demographics (e.g. age, sex, marital status) of
the population?
What are the main family types, income levels, lifestyles and socio-economic profiles of
current visitors? Does this fit with your proposal?
Are there specialized user groups such as large organizations, conventions or government
frequenting the area?
Is the demand mainly for a distinct season? Can this be extended? What demand might
be developed for off-season use?
What do you estimate the demand for your business to be for the next five years? What
occupancy or usage rates are forecast for these types of facilities for the next five years?
Supply Analysis
What competitive facilities are there in the market area? Which of these do you consider
to be your primary competitors?
What accommodation facilities are in the area? What is the history of occupancy rates?
What are the seasonal rates? Is there enough available capacity in the area to accommodate
an increase in tourist volume that may be caused by your tourism product/service?
Are any other directly competitive operations planned for the area?
What food and beverage facilities are in the area? What are their seating capacities, hours
of operation and turnover rates? Are they tourism friendly?
How would you describe the area’s tourism capacity? Under supplied or over supplied?
What special attractions are in the area that would add to general tourist activity or
complement your operation? Are any projects being proposed that would enhance your
opportunity?
What has been the performance of other facilities over the past five to 15 years? Steady
growth, no growth or negative growth?
Does your project reflect market demand and consumer preferences for this type of
facility or service? What do you base this assessment on?
Does this area need a business like yours? Why? How will you generate community
support?
What share of the tourism market do you think the proposed project could capture?
Why?
• Travel Activities and Motivation Survey (TAMS) – The TAMS survey examines
the recreational activities and travel habits of Canadians and Americans. The survey
examines out-of-town, overnight travel behaviour of one or more nights over the past
two years and provides detailed information on travelers’ activities, travel motivators,
places visited, type of accommodation used, impressions of Canada, its provinces
and territories, demographics and media consumption patterns. www.tpr.alberta.ca/
tourism/research/tamsnational.aspx
• Building Tourism - A Resource for Development – This newsletter provides
information about tourism development activities. Each issue focuses on a specific
development theme and includes activities of the Tourism Development Branch.
www.tpr.alberta.ca/tourism/tourismdevelopment/newsletters.aspx
• Tourism Business Outlook – Within this newsletter you will find information
pertaining to tourism business development and financing, along with salient statistics
pertaining to hotel sector performance, tourism industry trends and market research,
air industry information, and an overview of the activities of the Tourism Business
Development, Research and Investment Branch. www.tpr.alberta.ca/tourism/
tourismdevelopment/newsletters.aspx
Alberta Transportation
Alberta Transportation produces highway traffic statistics and makes them available on
their website: www.transportation.alberta.ca/3459.htm
Government of Alberta
A range of economic and investment data for the province can be found at the
following Government of Alberta website: www.albertacanada.com
The rugged nature of much of Alberta may also require special attention. Mountain runoff
may turn sleepy foothill creeks into swift-flowing rivers every spring – a prospective
developer must be aware of all such site conditions as well as know about the approvals
necessary to use land in these areas. Evaluating sites under consideration is a challenge
and requires thorough research.
Many of the permanent installations that a tourist facility requires, such as roadways and
utilities, are the same as those needed by any operation.
Where to Start
Some tourism ventures begin with an idea and then search for a suitable location for
development e.g., a developer looking for a suitable site to develop a golf course. Others
begin with a fixed location that needs an evaluation for a certain project, such as a
landowner deciding to develop his rural acreage into a tourism facility. Developers may
work with realtors or conduct their own site search. In either case, you need to obtain the
following information on the potential site and related maps and drawings:
• suitability of the physical environment, including soils, slopes, water quality and
quantity, tree cover, shoreline access, views, amount of snowfall, prevailing winds.
• status of the site including land ownership, land use bylaw classification, easements,
long-term planning projections, caveats, restrictive covenants.
• servicing and utilities – water, power, sewer, telephone, natural gas.
• access – availability, special facilities needed, responsibility for maintenance.
• land development requirements – clearing, grading, reclamation, engineering.
• location analysis – does the site meet the needs of the target market?
The following checklists identify the specific information sources and the questions that
all developers should seek to answer.
Location Analysis
People must be able to reach the site. The converse is also true: the site must be within a
reasonable distance of the anticipated target market group(s). Also, the developer should
have some understanding of the nature of the area – who lives there, what the municipal
development plans are for the area, and what are the attitudes towards the development?
Is the long-term future of the site reasonably secure?
How does the customer get there? What are the current • Alberta Transportation.
and nearest transportation services? What are the costs • Transport Canada.
of scheduled services?
• Scheduled air carriers, railways.
• roads. • Travel agents.
• air transport. • Aircraft Charter services.
• public transit, buses, railways. • Alberta Tourism, Parks and Recreation.
Does the developer need to provide or build access to the • Transport Canada.
site? If access is by private plane or helicopter service, can
• Alberta Transportation.
the proper licenses be obtained? What effect will poor
weather or seasonal changes have on accessibility? What • Local Municipality.
quality of access is needed? • Alberta Tourism, Parks and Recreation.
How far is the site from the customer? How many people
are within traveling distance? What are the historical • Alberta Transportation.
traffic counts? • Alberta Tourism, Parks and Recreation.
Are there any natural hazards in the area that affect the
site? Will the site be subject to flooding, landslides or • Alberta Environment.
avalanches? What are the typical snowfall levels? • Environment Canada.
• Local Municipality.
• Site Inspection.
What are the main fish and wildlife species in the area? • Alberta Sustainable Resource Development - Fish and
What is the most recent inventory? What management Wildlife Division.
programs are in place? Are there any seasonal restrictions • Alberta Environment.
that will affect your development? What habitat
protection is occurring to ensure the long-term viability
of fish and wildlife? What are the hunting and fishing
license requirements?
What is the status of this property? Who owns it? Who • Alberta Government Services – Land Registration and
owns the adjacent properties? What easements and Services.
caveats are registered against the title? Are there any
restrictive covenants in place? What is the assessed • Alberta Sustainable Resource Development.
value? • Alberta Tourism, Parks and Recreation (ATRL process
if public lands).
• Local Municipality.
What is the current land use bylaw designation? What is • Local Municipality.
the long range planning designation for this site and the • Alberta Sustainable Resource Development.
surrounding area? What types of approvals are needed
in the planning process? Is an Environmental Assessment • Alberta Environment.
Process (EAP) report required?
It is important to ask:
• Does the site have a secure supply of water? What is the water quality? How many litres
per minute are available? Is it adequate for fire protection? Is it available year-round?
What are the costs to obtain or develop a water supply?
• How will you dispose of sewage? Is there an existing system? What are the costs of
hook-up? Can the site physically support a septic system? What are the standards for
tourist use?
• Where is the garbage disposal site? What does it cost for disposal? Who is responsible
for collecting it?
• What are the nearest sources of power or fuel for heat, light and other needs?
• What are the costs of using or developing the power supply?
• Is road access of sufficient standard to attract tourists in poor weather?
Some ingenuity
• What emergency services are available? Is there fire protection in the area? What
and alternative about police, ambulances and doctors?
solutions may
be needed to Basic Health Standards
provide services Alberta’s Public Health Act is broad in scope and it gives officials considerable discretion
to support the preservation and protection of public health. Anything that might be
to visitors in injurious or dangerous to the public health is subject to inspections and enforcement
rural or remote under the Public Health Act. As a general rule, all food-handling facilities (restaurants,
areas. pubs, etc.) and swimming pools are inspected regularly to ensure compliance with basic
health standards.
There is also a considerable amount of overlap between public health under the Public
Health Act and public safety under the Safety Codes Act. Public buildings and spaces,
rental accommodations in any building or home, private sewage systems and swimming
pools are just some examples where inspections and enforcement are carried out by both
safety code and health inspectors. It is advisable to contact your local health official of
your project plans before construction and after completion of the project.
In urban areas, the municipal health unit usually inspects public and commercial premises
and enforces health standards. In smaller municipalities and rural areas these functions
are handled by the offices of the local department of health. In either case, the Public
Health Act is the basis of regulations, although municipal bylaws may supplement the
Act.
Before building, talk to the local health inspector. Obtain copies of the relevant Health
Act regulations and any necessary application forms. These regulations will specify how
you must handle sewage disposal, what minimum facilities you must provide, and the
food-handling methods to be used. Notify the inspector when construction is complete.
Water Supply
A development must have access to an adequate supply of water. In an urban setting,
check with the municipality to determine the costs of hooking up to the existing system
and the existing development standards such as pipe size requirements. You may also
be required to contribute to off site water and sewer facilities costs as a condition of
development approval. Ask about any development charges as well as user rates, which
can be a considerable cost for a busy tourist facility. If water from a Crown-owned resource
is to be diverted or pumped out, authorization is required from Alberta Environment or
Alberta Sustainable Resource Development.
In a rural setting, a developer must often provide the project with its water supply. The
source will likely be a well, but could also involve withdrawal and treatment of water
from a nearby lake or river. If a well is needed, obtain professional help to locate a
year-round supply of potable water. A test well is usually required to test both water
quality and supply. On Crown land, an exploration permit from Alberta Environment will
be required to drill a test well. The developer should ensure that water flows will meet all
standards required by Alberta Health and Wellness as well as standards for fire protection.
(Please note that Alberta Sustainable Resource Development should be contacted if the
development is within a Forest Protection Area and the Alberta Building and Fire Codes
should be consulted). Neighbouring residents and the local health department are also
potential sources for information regarding water supply and local soil conditions.
If a lake, river, stream, or ground water aquifier is to be used for water supply, a permit
or license must be obtained from Alberta Environment. Make contact with Alberta
Environment to determine the time it will take to obtain a license because it will depend
on prior water rights and the volume of the water supply. It is very important to confirm
the costs and availability of water supply before making a commitment to the site.
In all areas, private sewage disposal systems must be designed and installed in accordance
with the Alberta Private Sewage Systems Standards of Practice where the volume of
sewage is expected to be 25m3 (5,500 gallons) or less per day.
Septic fields can involve a large land area for tourist uses such as resorts or campgrounds.
The essential site requirements for septic disposal are good soil permeability and low
groundwater levels. These are critical to the usability of a rural site and should be
confirmed before any property is purchased. If the site contains extensive clay soils, it
may not be usable for the proposed project. As an alternative, check the availability and
costs of pump-out services.
Solid waste disposal is generally a municipal function. Check with these offices for
details of costs, pick-up, etc. In some rural areas, garbage must be taken to a sanitary
landfill by the user (developers should anticipate this cost). If the proposed facility is
in a remote area, be prepared to provide details of solid waste handling to the land use
approval agency. Alberta Environment will enforce these responsibilities.
Power Supply
Generally, power and telephone services in an urban setting pose few problems. Similarly,
natural gas is readily available in most parts of the province. Check for connection charges
and structural requirements.
In non-urban areas, these amenities may be less accessible and more costly to provide.
The developer is generally responsible for bringing power and/or telephone lines to the
site from the nearest source – this can be extremely expensive in rural areas or difficult
terrain. In some cases, alternative power sources may be more viable, consider:
• diesel-powered generators. These require accessibility for fuel trucks and fuel
storage.
• What new buildings are needed for the development? What are the estimated costs?
• What special facilities are needed for this site? Can they be accommodated, and if
so, what are the costs? Are they technically feasible? (Especially for marinas, ski
chairlifts, helicopter pads, boat launches, etc.)
• What land development is needed? What are the estimated costs for clearing, grading
and providing roads and parking, landscaping, and hooking up to or providing services
and utilities?
• What are the off-site development costs?
• Is the site accessible to people with disabilities? Can this be improved?
Building Codes
Construction and installation codes including the building, fire, electrical, plumbing, gas,
private sewage, boilers and pressure vessels, elevators, ski lifts and amusement rides are
regulated under the Safety Codes Act.
A variety of local bylaws and provincial regulations govern when you need a permit.
This may also vary with the specific circumstances surrounding your project. It is always
best to check with the authority having jurisdiction before starting any new work. These
authorities will be either the local municipality or the province, or you may choose to ask
one of the accredited agencies.
The Safety Codes Act requires that all contractors and homeowners in Alberta obtain
permits prior to commencing work on buildings covered by the Alberta Building Code
or work governed by the Canadian Electrical Code, the Alberta Gas Code or the Alberta
Plumbing Code.
Permits are available through municipalities that are accredited to administer the Safety
Codes Act, and through agencies who provide inspection services on behalf of the
province in non-accredited municipalities.
Financial Analysis
The financial analysis gives the tourism developer/entrepreneur a detailed picture of the
costs involved in starting up the enterprise, annual operating costs, projected income and
the means of financing the operation. This analysis will determine whether the project is
financially viable or whether changes are needed – either to the initial concept or to the
financing arrangements.
For the new or seasonal type of tourism venture, it is important to compare costs and
revenues with other operations in the industry. If you are expanding an existing business,
you must be sure that increased revenues will cover the costs of your changes, and provide
an adequate return on your investment. Most small business failures are attributed to
insufficient working capital to carry the business through its first two years of operation
– be realistic and accurate through the financial analysis process.
Chart 3 – Financial Analysis Steps • Prepare for Success: Starting a Small Business
in Alberta
Determine Capital Costs • Developing Your Financial Forecasts
Also, please refer to the ATPR’s guides:
Developers must also make a realistic assessment about the ability to finance initial
capital development costs with either debt or equity and/or a combination of the two
methods. Inability to finance the project may mean the concept should be scaled down,
pursued on a phased basis or not pursued at all.
Engineering $ ________
Insurance $ ________
(liability, bonding)
TOTAL $ _______
Cash receipts are cash inflows from cash sales, sales of fixed assets, collections of
accounts receivable, loan proceeds, and the owner’s contributions. Cash disbursements
are cash outflows for operating expenses, payments to suppliers, repayment of loans and
the acquisition of fixed assets.
Not all sales are collected in the month in which they are made, and not all expenses are
paid for in the month that they are incurred.
The most important function of a written cash flow is its ability to provide an estimate of
the amount of money required to finance day-to-day operations. It will forecast money
coming in and money going out.
A cash flow forecast can be a complicated item to prepare the first time. For a new
entrepreneur, it may be difficult to predict sales and expenses. Talk to other operators
in the area, contact relevant associations and or get some professional help. Realistic
estimates are the key to business viability.
Cash flow forecasts should be prepared for at least the first three years of operation. They
will likely need revisions as the business situation changes. If the forecasted figures vary
considerably from the actual, some changes in operation or financing may be necessary.
Review your cash flow with your lender, particularly if you plan to operate on a line-of-
credit. Know beforehand whether you must maintain a minimum positive cash balance
or whether you can operate on an overdraft. Determine what the requirements are to
securing an overdraft/revolving line of credit.
As a general rule, a new operation should have working capital equal to projected
expenses for six months.
Revenues and expenses are projected based on the results of previous tasks in this guide.
Income, expenses and profits are categorized in the income statement as follows:
• Revenue: Income generated from the sale of the company’s product or service.
• Other Income: Income earned from other activities (e.g. interest earned on bank
deposits).
• Costs of Goods Sold: Expenses directly related to the production of goods and services
including purchases of materials, freight and labour.
• Gross Profit: Revenue minus Cost of Goods Sold.
• Operating Expenses: All selling, administrative and depreciation expenses.
• Operating Profit: Gross Profit less Operating Expenses.
• Interest Expense: Expenses resulting from debt financing.
• Net Profit Before Tax: Operating Profit less Interest Expense.
Notice that the last item on the income statement is your
projected net profit for the year. This forecast figure will
be kept for comparison to the actual net profit figure.
At the end of each year, a condensed income statement
should be prepared. It will be similar in appearance to
the projected income statement, but will be actual rather
than estimated numbers. This is a valuable summation, as
it will allow you to determine your projected and actual
break-even points.
Assets are listed in order of liquidity, or nearness to cash. Thus, cash, being the most
liquid asset, is listed first, followed by other “current assets”. Current assets are assets
which will be turned into cash within one year and include cash, marketable securities,
inventory, accounts receivable and prepaid expenses. Long term or fixed assets are those
which are not intended for conversion into cash within one year. Fixed assets include
land, buildings, equipment, furnishings and long term investments.
Liabilities are also classified as being either current (due within one year) or long term.
Current liabilities include accounts payable, accrued wages and current portion of long
term debt. Current liabilities are recorded first, followed by long term liabilities.
A pro forma balance sheet should be prepared for at least the first three years of operation.
It is also recommended that three types of financial statements also be prepared for the
construction/start-up phase prior to the venture opening for business.
Financing Methods
In order to determine the best financial arrangement possible, an entrepreneur must
consider all potential sources of financing including:
• owner’s investment.
• outside investment sources.
• loans from banks.
• other private lenders.
The interest costs from each source must be calculated into the projected income statement,
and the proposed scheduling of repayment must fit into the cash flow forecasts.
It is important to determine at a very early stage if you can raise the necessary debt and
equity financing for the project. Banks typically will not lend more than 50% of the costs
required to construct a new tourism project. Developers therefore must have or be able to
raise sufficient cash equity to undertake a tourism project.
IRR can be used to rank several prospective projects a firm is considering. Assuming
all other factors are equal among the various projects, the project with the highest IRR
would probably be considered the best and undertaken first.
The summary of your financial research will be encompassed in your business plan.
Is the opportunity available to purchase an existing franchise business? What are the
conditions of transferring the “flag” or “franchise” to the new owner?
Does the business require considerable investment to upgrade facilities? Have you
included these costs in your financial plan? Will you recover these costs?
Do you have clear and professionally prepared financial statements from the vendor for
each of the past three to five years? Have you reviewed prior years’ tax returns for the
business?
Do you have a current analysis of all assets (inventory, fixed assets, accounts receivable)
and liabilities (loans, taxes due, trade creditors)?
Does your financial analysis include projected cash flow and income statements? Are
these positive? Will you make a profit? Will you generate sufficient cash flow? What
about balance sheet ratios?
How will you succeed in this business where previous owners failed or received
inadequate return?
Have you reviewed the business potential and sale details with a professional accountant
and lawyer? Do you need to obtain an independent appraisal of the assets?
Does your market research support the viability of this business? Does it have a
well-defined market?
Has there been development of new competition for this service or product? Can the
market support this amount of competition?
Have other tourism-related businesses, or the area in general, suffered an overall decline
in visitors? Why?
Has the business developed a poor reputation among tourists, among the local business
community, or among employees? Why? Will you be able to overcome this? How? (Are
there any legal judgments against the company?)
Does the business receive a positive rating in the site evaluation criteria? Are there any
land planning, regulatory or environmental issues that could impact the viability of the
business in the future?
For further information the prospective buyer should also meet with lenders and with
other members of the business community. Additional information on buying a business
can be obtained through The Business Link’s website: www.canadabusiness.ab.ca
• Complete business plan, including capital cost estimates for facilities (and sources of
financing) and a forecasted statement of income and expenses, projected cash flow
statement and pro forma balance sheets. (Forecasts should be prepared for at least
three years).
• Amount and purpose of the loan and the term for which it is required.
• The opening balance sheet or capital budget statement, identifying all proposed
sources of financing.
To acquire financial assistance, a complete concept plan and detailed business plan
are very important.
By this point in the business development process you have a very clear idea of what you
want to do, where you want to be and how you are going to get there. All the background
information has been gathered and you are ready to prepare three key plans:
• The Business Plan.
• The Marketing Plan.
• The Concept Plan.
These three documents will allow you to more easily navigate other steps of the
development process; securing financing and obtaining your permits and approvals. This
section of the guide describes the elements of each plan.
Simple or detailed, make sure the information is complete and accurate. For most
development applications, the proposal should also be easy to photocopy because it will
be distributed to several people for review.
The introductory pages of each plan should quickly and simply explain the highlights
of your project and provide background information on the development – where it is
to be located, what facilities are involved and who owns the property. Include maps,
photographs and other relevant graphics.
Business Plan
Please refer to the ATPR’s Tourism Business Planning Guide for more information on
how to prepare a business plan: www.tpr.alberta.ca
The summary of all your market and financial research will be encompassed in your
business plan. The plan describes your business goals and the business concept in relation
to local/regional and tourism markets. It outlines the way in which you intend to finance
and manage your project. It incorporates a detailed financial analysis, including cash
flow forecasts, projected income statements and pro forma balance sheets. The business
plan is the basis of your submission to lenders and investors: be sure to present estimates
of future profitability based on research and sound assumptions. This plan is also your
own guide to what you expect your business to achieve. It should contain:
• A summary of your proposal, the intended product/service and target market group(s),
a description of industry trends, your competitive positioning, management highlights
and the financing request at hand.
• A description of your business goals/objectives, anticipated sales volume, market
share, visitor satisfaction, repeat visitation and or other similar targets.
• A marketing plan that includes a description of products/services to be offered and an
analysis of the market, trends, competition and identification of your target markets.
It should also highlight your sales and promotional strategy. This section may be
presented in a separate plan.
• A financial plan, that includes projected income statements, cash flow statements and
pro forma balance sheets that provide detailed monthly operating forecasts for the first
year of operation and annual forecasts for the next two to three years. (Includes opening
balance sheet and statement of construction/start-up costs and sources of financing). A
discussion of debt/equity financing and the corresponding ratio analysis are required.
Include financial statements with previous year’s balance sheets and income statements
(for an existing business). (May also include personal net worth statements of the
shareholders.)
This plan is
also your own
guide to what
you expect
your business
to achieve.
• A management plan, which will set out the organizational form and structure of
the business. It should highlight the skills, experience and responsibilities of the
management team. (This section should contain a discussion of the developer’s
background - who is involved, what other business ventures is he/she involved in and
what is his/her track record in business).
• Operations plan, discussing operational parameters such as hours of operation,
insurance, risk management practices, cash/credit handling, procurement, staff
training, etc.
• A project schedule, covering government and financial approvals, construction period
and preparation time before the development opens its doors.
• A staffing plan based upon detailed human resource requirements. Summarize duties,
responsibilities and reporting relationships. (You may choose to do a more detailed
human resource plan to supplement the business plan.)
• Your environmental/green position. Outline how you will address social and
environment obligations in your area, such as volunteerism, recycling and alternative
energy sources.
• A critical risks and assumptions analysis should outline your underlying assumptions
in support of the business plan. The major risks facing your proposed business operation
should also be summarized with contingency plans you will adopt to mitigate the
negative impact of these risks.
Refer to ATPR’s Tourism Business Planning Guide and Tourism Funding Sources
Guide at: www.tpr.alberta.ca
Detailed examples and worksheets for business plans can be obtained from The Business
Link (Canada-Alberta Business Service Centres): www.canadabusiness.ab.ca or 1-800-
272-9675
Marketing Plan
Your marketing plan can take two forms. It is a major component of your business plan
and it may also be a separate document that expands upon and details the marketing
information contained in the business plan.
The supply and demand analysis undertaken as part of determining project feasibility
gives you a clear picture of the people you are aiming to attract and the competition you
are faced with. Your marketing plan outlines the strategy for achieving your targeted
share of the market. This plan is an important step and should be started early in the
development process. Your marketing plan should include:
• A definition of your target market(s) including type, size and geographic region.
Provide a profile of the clients you anticipate attracting (Demographics: age, sex,
household composition and income. Psychographics: interests, beliefs, values and
activities).
• An analysis of the tourism supply: Who your competition is, what their strengths/
weaknesses are, how you will position yourself vis a vis the competition, what your
competitive advantage is and what percentage of the market you feel that you can
attract.
• A section on how you plan to initially attract your clients: Outline a campaign for
marketing the development through various media (print, broadcast, web/internet)
complete with costs and schedules according to your proposed opening date.
• A section on future marketing efforts: Marketing efforts to launch a development
often differ from ongoing marketing efforts. A section of the marketing plan should
generally discuss the timing and shift of resources and strategy. This should also
include additional market research, over and above that done to initially investigate
the opportunity (e.g. customer feedback forms and customer databases).
• Overall advertising strategy: Contact local and regional media for reader/audience
data, rates etc. Talk to other operators for proven techniques.
• Overall sales strategy: How will personal sales activities be utilized to capture
business?
• Planned promotional campaigns: Determine the timing of these activities (discounts,
contests, publicity, etc.) and estimate the associated costs.
• How you will use referral groups and associations such as Travel Alberta, Tourism
Destination Regions, destination marketing associations, Chambers of Commerce and
tour companies.
• Examine road signage needs and restrictions. The Province has a tourism highway
signage program. Details can be found at: www.signupalberta.com
• Cooperative and joint marketing efforts with other operators.
• Costs to undertake various activities should be outlined in a marketing budget.
• Method of evaluation: How will you measure the effectiveness of your marketing
efforts?
Travel Alberta also provides information on tourism marketing plans on their website:
www.industry.travelalberta.com
This concept plan is the basis for obtaining land-use approvals and for developing cost
estimates used in the financial analysis. Make sure all the questions have been answered
and the concept plan is complete. If the project is large, it may be advisable to obtain the
help of a professional consultant for concept plans and cost estimates for buildings and
site development.
The physical concept plan is a combination of graphic and written information. This
package should include:
• A site analysis summary outlining the physical features of the site and noting any
deficiencies that must be overcome.
• An environmental impact statement reviewing the existing environment and its
capability to adjust to the proposed development. Ways of mitigating and minimizing
negative impacts are laid out as part of the development, community liaison and
construction processes. This may be a separate document depending on the scale of
your development and the requirements specified for land leasing and/or a development
permit.
• A program statement describing the users, activities and interactions in physical
design components and what is required in each.
• An illustration that generally places all the physical development components on a
map of the site and shows all circulation patterns between active areas.
Section V: Development
and Licensing Approvals
• A signed affidavit from the legal owner(s) if applications are being made on their
behalf.
• Site dimensions. Copies of property plans and dimensions can be obtained from the
land titles office and possibly from local survey firms.
• A simple diagram showing building sizes and location in relation to property lines.
Include any important physical information such as watercourses, easements, rights-
of-way and existing land uses.
Many tourism developments take place in communities that strongly support tourism
initiatives and welcome new additions to the level of products and services offered
locally. However, in some areas, tourism developments may be perceived as a negative
element in the local community or as a threat to the environment. Often, the proponent
must prove that the development will not place undue pressure on areas of public concern
such as fish stocks, the local water supply or an increase in the level of traffic. In special
areas such as the mountains, foothills or other highly valued recreation areas, the potential
developer should carefully review the goals of the community as stated in their planning
documents. Gaining local support depends on good communication and understanding
local concerns. To achieve good communication, plan and prepare to meet with local
advisory groups and residents.
Many municipalities and regions also have economic development offices specifically
set up to help you work through the development process.
Sequence of Approvals
From concept to opening day, tourism developments – large and small alike – are subject
to a number of approvals. A prospective developer may even make applications on
behalf of the current owner, and make a conditional offer to purchase subject to these
approvals. Applications for some types of approvals can be processed simultaneously.
Most developers, however, find that they must follow the sequence outlined in Chart 4
(page 65).
Ensure that all the requirements have been addressed before making
a financial commitment to the site.
Local Municipality
• Land use designations and subdivision controls.
• Development and building permits, servicing agreements and connections.
• Business licenses.
• Source of local information, detailed mapping.
Provincial Government
• Encourages tourism development through departments such as Alberta Tourism, Parks
and Recreation, Alberta Sustainable Resource Development and Alberta Culture and
Community Spirit.
• Manages natural resources including provincial parks, Crown lands, water resources
(lakes, rivers, streams, groundwater), fish and wildlife and allocating shoreline
leases.
• Environmental Assessment Process.
• Transportation plans and developments and highway signage.
• The Safety Codes Act establishes safety standards by regulation for areas of provincial
jurisdiction. Permission to carry out work and inspections for compliance are the
responsibility of accredited local authorities and agencies. Regulations include
building, fire protection, gas, propane, plumbing, private sewage systems, electrical,
boilers and pressure vessels, elevators, ski/gondola lifts and amusement rides.
• Commercial vehicles – permits.
• Food, liquor and accommodation requirements and licenses.
• Crown land leasing (Alberta Tourism Recreation Leasing Process).
• Métis land is governed by Métis Settlement legislation in Alberta. Developed
cooperatively by the Province of Alberta and the Alberta Federation of Métis
Settlements Association, this legislation establishes the only Métis land base and the
only form of legislated Métis government in Canada.
Federal Government
• Federal regulations mainly involve transportation and harbour activities. Aircraft and
vessel licenses for passenger craft are also federal responsibilities.
• National Parks are a federal responsibility through the Parks Canada Agency.
• Indian Reserves are a federal responsibility.
• May participate with provinces in environmental impact assessments through federal
departments, particularly for projects with inter-jurisdictional implications.
1. Project Description
NOTE:
If private land, delete steps 2, 3, 6 and 13. If no Environmental Assessment Process is required, delete
steps 4 and 5. If no subdivision, delete steps 10 and 14. A development agreement may be required as a
condition of a development permit.
Timing
Each municipality follows procedures and time lines for approving development
applications as defined by the Municipal Government Act. However, the actual timing of
these procedures will vary somewhat between areas. Check with the local planning and
building permit offices for their procedures and time frames. Many municipalities have
procedure manuals describing the particular steps for approval or amendment of permits
and bylaws.
Information in this regard can also be obtained through Alberta Municipal Affairs.
Most applications will be approved considerably faster if the land is already designated
for the proposed use. Getting property properly designated and statutory plans changed
to allow for the proposed land use can add significantly to time lines. It will also delay
other approvals.
Check with the
local planning Land use approvals are critical – be thorough and critical in the site
and building selection process to avoid setbacks.
permit offices Fees
for their
Municipalities charge for processing development and amendment applications.
procedures and
time frames. Statutory Plans and Land Use Bylaws
Most Alberta communities have a municipal development plan, which contains general
growth and development policies for future expansion and changes within the municipality.
Area structure plans may have been adopted to provide more detailed planning for a
portion of the municipality.
A Land Use Bylaw implements statutory plans. It divides a municipality into districts and
establishes conditions and standards for land use and development in each district.
• Can the development be achieved within the minimum lot sizes, lot frontage, lot
coverage, building setbacks and parking requirements specified in the Land Use
Bylaw?
The proposed development must meet all planning regulations. If not, you will have to
apply to amend the bylaw and/or statutory plans.
Alberta Municipal Affairs has information that is a helpful guide through the municipal
planning process and the steps in the subdivision process at: www.municipalaffairs.
alberta.ca/mc_planning.cfm
Amendment Procedures
Actual procedures for amendments to statutory and land use bylaws are specified in the
Municipal Government Act and are followed by all municipalities.
If the amendment requested is of a minor nature, the process may be very straightforward.
If, however, the project is controversial or represents a major change in the community’s
future land use, the process will be more involved.
Check with the municipality to confirm the process for applying for a building and
other safety codes permits.
Meet with residents and municipal staff and bring clear, well-documented information
to all meetings. Be prepared to address the arguments against development. It is the
responsibility of the developer to provide a rationale for the proposal, and address any
physical, environmental or economic concerns of the community.
The steps toward amending a Municipal Development Plan or an Area Structure Plan
Bylaw or a Land Use Bylaw are outlined in Chart 6 (page 71). If amendments are
required, the applications can run concurrently.
The municipal council may approve or refuse your requested amendment(s). Once the
necessary amendment(s) is approved, you are free to apply for the development permit,
which regulates the use and form of the development.
Remember that the person who has care and control over the building is responsible for
compliance under the Safety Codes Act. This will usually be the owner of the building after
completion of the project and also may be the owner among others during construction.
Should there be deficiencies after the building is completed, an inspector’s order will be
issued to the owner for compliance as inspectors do not assign fault or liability.
Amendment Procedures
• Public notice in papers once a week for two consecutive weeks, before meeting.
Appeal Procedures
You have 14 days after receiving an unfavourable development permit decision to submit
an appeal. The direct route to appeal this permit decision is through submitting a written
statement to the municipal subdivision and development appeal board. The board will
hold a hearing within 30 days of receiving the written appeal. The appellant (that’s you),
persons to whom notice of the original permit were given, and any land owners the board
deems to be potentially affected by the appeal, are notified at least five days before the
hearing.
The board receives and reviews all information placed before it and must give a written
decision within 15 days of closing the hearing.
A board decision may be appealed to the Court of Appeal on a point of law or
jurisdiction.
Subdivision applications that are denied, usually do not meet the use provisions of a
land use bylaw or the policies of a statutory plan. Most decisions can be appealed to
the municipal subdivision and development appeal board. Certain subdivisions must be
appealed to the Municipal Government Board. Appeals must be made within 30 days of
an application being refused.
If the appeal board subsequently denies the appeal, a further appeal can be made to the
Court of Appeal but only as it pertains to a question of law or jurisdiction. Furthermore,
it must be made within 30 days of the board denying the appeal.
Build a boat ramp, wharf or modify the shoreline in any • Alberta Environment.
significant way. • Fisheries and Oceans Canada.
• Alberta Sustainable Resource Development, Public
Lands Division/Fish and Wildlife.
Acquire a permit to construct retaining walls into a lake, • Alberta Sustainable Resource Development, Public
commercial piers, breakwaters or a permanent domestic Lands Division.
pier or boat launching facility. • Alberta Environment.
• Fisheries and Oceans Canada.
Install a ski lift or aerial tramway. • Alberta Elevating Devices and Amusement Rides
Safety Association (AEDARSA).
Become a licensed fishing or hunting guide/outfitter. • Alberta Sustainable Resource Development, Fish
and Wildlife Division, regional or district offices.
• Alberta Professional Outfitters Society.
Establish a facility in a provincial park. • Alberta Tourism, Parks and Recreation, Parks
Division.
• Alberta Tourism, Parks and Recreation, Tourism
Business Development Unit (advisory services).
Undertake commercial canoe, kayak or river-raft • Alberta Sustainable Resource Development, Public
Lands Division.
expeditions.
• Alberta Tourism, Parks and Recreation, Parks
Division – if the activity is located within a park or
protected area managed by the Division.
• Alberta Environment.
Register with the Workers’ Compensation Board (must be • Workers’ Compensation Board.
done before commencing operation – the responsibility
of employers with respect to accident prevention,
industrial hygiene and first aid are outlined in the Workers’
Compensation Act).
Apply for registration of your tourist accommodations in the • Alberta Hotel and Lodging Association.
Alberta Accommodation Guide.
Know the rights of employees and employers, and what • Alberta Labour Relations Board.
defines unfair labour practices. • Alberta Employment and Immigration.
Know the regulations for health and safety of employees in • Workers’ Compensation Board.
the workplace. • Alberta Employment and Immigration.
Know the detailed requirements that must be met by travel • Service Alberta.
agencies and tour companies regarding the capital net • Alberta Tourism, Parks and Recreation, Tourism
worth and trust fund requirements of customers’ monies. Business Development Unit.
• Canada Coast Guard certifies passenger vessels, hovercrafts, charter boats, including sports fishing charter
operations.
• The Small Craft Harbour Branch of Fisheries and Oceans Canada maintain public harbours and wharves. In addition,
their approval is required for construction of breakwaters to protect harbour/marina facilities.
Insurance
Although this is not strictly an operating requirement, all potential tourism developers should research their insurance
requirements for both property and liability insurance.
Electricity and/or Gas Supply. • Local municipality and local utility company.
Operating Licenses
and Permits Contact Agency
Commercial guiding and instructing activity (provincial • Alberta Tourism, Parks and Recreation, Parks
parks, wild land parks, provincial recreation areas). Division.
Listing on the Travel Alberta website (optional). • Alberta Tourism, Parks and Recreation, Tourism
Services Branch.
Construction
By now, all the necessary approvals and permits to advance into the final stages of design have been received.
Chart 8 (page 79) illustrates one possible flow of activities prior to a successful business start-up. Note that construction
and operation activities proceed together.
The order or arrangement of tasks may change but be sure to include them all. Anticipate the demands the schedule of
events will place on you and plan accordingly.
You are encouraged to contact Alberta Tourism, Parks and Recreation, Tourism Business Development, Research and
Investment Branch for information and advisory services at anytime during the tourism development process. The
department wishes you every success in your business venture.
Please refer to our other guides to help you in your tourism venture:
ATPR wishes
you every
success in
your business
venture.
Tender
Construction
Toll free in Alberta: 1-866-922-9221 Workplace Health and Safety Policy and
Toll free fax in Alberta: 1-800-661-1993 Legislation
8th Floor Labour Building
Edmonton Office 10808 - 99 Avenue
P.O. Box 2415 Edmonton, Alberta T5K 0G5
9912 – 107 Street Telephone: (780) 415-8690
Edmonton, Alberta T5J 2S5
Telephone: (780) 498-3999 Alberta Environment
www.environment.alberta.ca
Calgary Office
300-6 Avenue SE Alberta Environment Information Centre
Calgary, Alberta T2G 0G5 Main Floor, Oxbridge Place
Telephone: (403) 517-6000 9820 – 106 Street
Edmonton, Alberta T5K 2J6
WCB Claims and Employer Inquiries Telephone: (780) 427-2700
Telephone (Edmonton): (780) 498-3999 Fax: (780) 422-4086
Telephone (Calgary): (403) 517-6000 Email: env.infocent@gov.ab.ca
Drumheller Foremost
Box 2319 Box 37
100 - 515 Highway 10 E 218 Main Street
Drumheller, Alberta T0J 0Y0 Foremost, Alberta T0K 0X0
Telephone (CAIS Analyst): (403) 823-1696 Telephone (Insurance): (403) 867-3666
Telephone (Insurance): (403) 823-1684 Fax: (403) 867-2038
Telephone (Lending): (403) 823-1677
Fax: (403) 823-5083 Fort Vermilion
PO Box 487
Edmonton 4601 - 46 Avenue
Room 100 Fort Vermilion, Alberta T0H 1N0
J.G. O’Donoghue Building Telephone (Insurance): (780) 927-4209
7000-113 Street Telephone (Lending): (780) 927-3715
Edmonton, Alberta T6H 5T6 Fax: (780) 927-3838
Telephone (Lending): (780) 415-1216
Fax: (780) 415-1218 Grande Prairie
102 - 10625 Westside Drive
Edson Grande Prairie, Alberta T8V 8E6
PO Box 11 Telephone (CAIS Analyst): (780) 538-5234
Provincial Building Telephone (Insurance): (780) 538-5355
Edson, Alberta T7E 1T2 Telephone (Lending): (780) 538-5220
Telephone (Lending): (780) 723-8233 Fax: (780) 532-2560
Fax: (780) 723-8575
Grimshaw
Fairview Regional Office Box 802
Box 1188 5306 - 50th Street
Provincial Building 2nd Floor Grimshaw, Alberta T0H 1W0
10209 - 109th Street Telephone (Insurance & Lending): (780) 332-4494
Fairview, Alberta T0H 1L0 Fax: (780) 332-1044
Telephone (CAIS Analyst): (780) 835-2295
Telephone (Insurance & Lending): (780) 835-7547 Hanna
Fax: (780) 835-5834 Box 7 (Insurance)
Box 349 (Lending)
Fairview Provincial Building
Box 1188 401 Centre Street
Provincial Building Hanna, Alberta T0J 1P0
10209 - 109th Street Telephone (Insurance & Lending): (403) 854-5525
Fairview, Alberta T0H 1L0 Fax: (403) 854-2590
Telephone (Insurance & Lending): (780) 835-2703
Fax: (780) 835-3994 High Prairie
Provincial Building
Falher PO Box 1259
Box 658 5226 - 53rd Avenue
701 Main Street High Prairie, Alberta T0G 1E0
Falherm, Alberta T0H 1M0 Telephone (Insurance): (780) 523-6507
Telephone (Insurance & Lending): (780) 837-2521 Fax: (780) 523-6569
Fax: (780) 837-8223
Villeneuve Airport
P.O. Box 9860
Edmonton, Alberta T5J 2T2
Telephone: (780) 890-8900
Toll free: 1-800-268-7134
Fax: (780) 890-8329
Email: generalaviation@flyeia.com
Tourism Development
Tourism, Parks and Recreation
Tourism Business Development, Research
Guide
and Investment Branch
6th Floor, Commerce Place This guide examines Alberta’s tourism industry and
10155 – 102 Street
Edmonton, Alberta T5J 4L6
provides a thorough analysis of tourism development in
Telephone: (780) 422-4991 the province. The information abides by the regulations
or 310-0000 (toll free anywhere
in Alberta) set by municipal, provincial and federal governments,
making it a practical tool for the first-time tourism
www.tpr.alberta.ca
developer.